L/H PROFITS DROP $203 MILLION

The nation’s life and health insurers experienced a $203 million, or 1.6 percent, decline in operating profits during the first three months of 2000, as compared to the year-earlier period, according to a study by Weiss Ratings Inc., an independent provider of insurance company ratings and analyses. Drags on operating profits included an increase in surrenders and life insurance claims.

However, the life and health companies realized a $164.8 million increase in capital gains which helped offset the profit decline. After adjusting for some miscellaneous items, the industry wound up with an overall net profit that was virtually flat when compared with last year’s—up a slight 0.6 percent, or $37.4 million.